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DERIVE THE EQUILIBRIUM REAL OUTPUT & EQUILIBRIUM REAL INTEREST RATE AND PROVE THAT THE IS & LM VALUES ARE EQUAL AT THE EQUILIBRIUM REAL OUTPUT
DERIVE THE EQUILIBRIUM REAL OUTPUT & EQUILIBRIUM REAL INTEREST RATE AND PROVE THAT THE IS & LM VALUES ARE EQUAL AT THE EQUILIBRIUM REAL OUTPUT & EQUILIBRIUM REAL INTEREST RATES WITH PROPER STEP-BY-STEP SOLUTIONS. NO PROPER SOLUTIONS, NO MERIT.
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Given: Ca = 645; mps = 0.3; I = 550 + 0.25Y - 3000i; G = 500; Ta = 150; t = 0.25; M/Pd = 6Y - 6000i and M/Ps = 5,500.
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